Shares of Plug Power Inc (NASDAQ: PLUG) closed over 4.3% higher in the regular and after-hours sessions on Tuesday.
What Happened: The spike in the shares came despite Piper Sandler analyst Pearce Hammond lowering the price target on Plug Power from $48 to $42. Hammond maintained his Neutral rating on the fuel cell company, the Fly reported.
The analyst reportedly said that, if the company achieves its “green” hydrogen production targets of 500 metric tons per day (TPD) in 2025 and 1,000 TPD in 2028, revenue could swell to $1 billion in 2025 and $2 billion in 2028 compared with the estimated 2021 revenue of $518 million.
The challenge for the New York-based company is that hydrogen is in the next stage of decarbonization unlike solar, wind, batteries, and electric vehicles, which are up for immediate adoption, according to the analyst.
However, Hammond said that Plug Power has a first-mover advantage in developing green hydrogen plants.
Why It Matters: The upswing in Plug Power’s stocks comes a day after the company announced a partnership with Chart Industries, Inc (NYSE: GTLS) and Baker Hughes (NYSE: BKR) on setting up a clean-hydrogen-only private infrastructure fund called FiveT Hydrogen Fund.
The FiveT announcement had led to a decline in the shares. According to Plug Power, the fund will exclusively finance projects related to clean hydrogen.
Last week, the company announced plans to build a green hydrogen production plant in cooperation with Brookfield Renewable Partners L.P. (NYSE: BEP) and Brookfield Renewable Corporation (NYSE: BEPC).
Price Action: Plug Power shares closed nearly 3.7% higher at $34.67 in the regular session on Tuesday and rose 0.66% in the after-hours trading to $34.90.
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